Comcast Corporation (NASDAQ:CMCSA) opened with a big gap up but lost most of the intraday gains to close almost flat, with a minor gain of 0.63% only. Interestingly, the volume at 21 million was just at par with the daily average, a bit unusual for the session on which the quarterly result was announced. The company announced an excellent result, beating the estimates on both the top and bottom lines.
Comcast Corporation (NASDAQ:CMCSA) reported sales of $17.9 billion, an increase of 2.6% on a y-o-y basis, against the street consensus of $17.6 billion. This figure includes one-time sales drivers like NBC’s exclusive coverage of Sochi Olympics in 2014 and airing the 2015 Super Bowl. The figure comes to 7.6% on a y-o-y basis if those are discounted. The street was looking for earning of $0.74 but the company reported adjusted earnings of $0.79, an increase of 16%.
The advertising revenues of the broadcast networks of Comcast Corporation (NASDAQ:CMCSA) saw an increase of 5.5% over a y-o-y basis, excluding the sporting events. Universal Studios and its successful film ‘Fifty shades of grey’ led the film entertainment division of the company to sales higher by 7% and 2% boost to operating cash flows.
The high speed internet services of the company saw an addition of 407,000 net new customers, taking this customer segment neck to neck with the cable tv segment with roughly 22.4 million accounts each. A successful launch of a Harry Potter section at Orlando’s Universal Studio’s park helped the theme park division to record a revenue jump of 34% and 55% higher operating cash flows.
Technically, it is the 6th month of the stock being stuck in the same range, roughly $55-$60. The long term uptrend remains intact but the bulls need a break $63 to push the price up to $70 levels.